Pharma BD Deal Intelligence

Hospira Inc. / Javelin Pharmaceuticals, Inc.

2010 · Acquisition/Merger · $145M · Complete

A $145M bet on Dyloject IV pain drug that turned into a 4.5-year regulatory ordeal—a Complete Response Letter arrived three months after close, and approval didn't come until December 2014. Dyloject launched in July 2015, but Hospira was acquired by Pfizer two months later and quietly discontinued the product.

WRONG BY 46 POINTS

A $145M bet on a near-term pain-drug approval turned into a 4.5-year regulatory ordeal — Dyloject launched just as Hospira itself was swallowed by Pfizer, then was quietly discontinued

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The coverage arc

Apr 12, 2010 SEC EDGAR - Javelin Pharmaceuticals 8-K Exhibit 99.1 Bullish

Our Board of Directors, after consultation with our advisors, and in accordance with our merger agreement with MPI, has determined that Hospira's proposal is a…

Jun 22, 2010 GaBI Online Bullish

GaBI Online characterized the merger as a portfolio-fit acquisition leveraging Hospira's existing anesthesiologist call points for Precedex and noted…

Jul 01, 2010 SEC EDGAR - Hospira SC TO-T/A Exhibit (a)(5)(K) Neutral

Hospira announces successful completion of tender offer for shares of Javelin Pharmaceuticals; all validly tendered shares accepted for payment, with a…

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Hospira to acquire Javelin Pharmaceuticals for ~$145M, adding Dyloject IV pain product. Tender offer completed July 1, 2010.

Did it work? Outcome assessment

A $145M bet on a near-term pain-drug approval turned into a 4.5-year regulatory ordeal — Dyloject launched just as Hospira itself was swallowed by Pfizer, then was quietly discontinued

Strategic verdict
Failed to Achieve
Financial impact
Neutral
The $145M (~$2.20/share) deal was structured around a single asset, Dyloject. A UK particulate-matter recall during the tender offer triggered a material-adverse-effect dispute and forced renegotiation. Dyloject ultimately won FDA approval in December 2014 (~4.5 years post-deal, after prior CRLs) but never became a material franchise; it has since been discontinued. Hospira itself was absorbed by Pfizer in 2015, ending Javelin as a standalone integration story. No public impa
Pipeline outcome
Mixed
Lead asset Dyloject (diclofenac sodium injection) was eventually approved by FDA on Dec 23, 2014 after a delayed regulatory path, validating the assets' viability, but the product was later discontinued, leaving no durable pipeline contribution.

Key facts

Disease & market context

Acute Post-Operative Pain

51.4M US cases/yr

Disease Overview

Acute post-operative pain affects nearly every surgical patient and is traditionally managed with IV opioids such as morphine, fentanyl, and hydromorphone. Opioid-related adverse events — respiratory depression, nausea, ileus, and sedation — extend length of stay and drive interest in non-opioid IV adjuncts that reduce opioid burden.

Competitive Landscape

Hospira's 2010 acquisition of Javelin slotted Dyloject (diclofenac sodium IV) into a US hospital pain market dominated by IV opioids and a small set of non-opioid IV agents: Cumberland's Caldolor (IV ibuprofen, FDA-approved 2009) and IV acetaminophen (Cadence's Ofirmev, approved late 2010). Dyloject's pitch was a fast-acting IV NSAID using a hydroxypropyl-beta-cyclodextrin solubilization platform, designed for low-volume bolus dosing with an opioid-sparing label claim. At deal time Dyloject was awaiting FDA approval — and a CRL ultimately delayed US approval until December 2014, four years post-deal, an outcome that significantly diminished Hospira's ROI on the $145M acquisition. Strategically, Dyloject was positioned to leverage Hospira's existing acute-care sales infrastructure already calling on anesthesiologists for Precedex (dexmedetomidine), making the cross-sell logic clean even if execution stalled on regulatory timing. Hospira retained global rights ex-Europe, where rights remained with Therabel. The deal is widely viewed as strategically sound but financially compromised by the CRL — Pfizer ultimately inherited Dyloject when it acquired Hospira in 2015. Source: https://www.gabionline.net/pharma-news/Generics-manufacturer-Hospira-merges-with-Javelin

Related deals — scored

DealYearValueOutcome
Hospira Inc. / Javelin Pharmaceuticals, Inc. (this deal)2010$145M25
Hospira Inc. / Abbott Hospital Products Division200454
Hospira Inc. / Orchid Chemicals & Pharmaceuticals (Generic Injectables Business)2010$400M23
Hospira Inc. / Orchid Chemicals & Pharmaceuticals Ltd. (API and R&D facilities)2012$200M22
Hospira Inc. / Orchid Chemicals & Pharmaceuticals Ltd. (Generic Injectables business)2009$400M22
Watson Pharmaceuticals (Actavis Inc.) / Actavis plc2012$5.9B97
Kohlberg Kravis Roberts & Co. / PRA International (Genstar Capital)2013$1.3B91

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